D-Link 2001 Annual Report Download - page 49

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17
D-LINK CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
The bondholders of the second issuance of domestic convertible bonds may redeem their bonds
within the first thirty days after September 28, 2002, based on the redemption terms prescribed in the
bond issuance agreement. D-Link intends to use long-term credit facilities to finance such
redemption if needed.
13. Retirement Plans
The following table sets forth the benefit obligation and accrued pension balance related to D-Link’ s and
DTI’ s retirement plan as of December 31, 2000 and 2001:
2000 2001
Benefit obligation:
Vested benefit obligation $ (1,487) (5,504)
Non-vested benefit obligation (66,098) (99,186)
Accumulated benefit obligation (67,585) (104,690)
Projected compensation increases (86,657) (116,880)
Projected benefit obligation (154,242) (221,570)
Fair value of plan assets 109,405 127,830
Funded status (44,837) (93,740)
Unrecognized net transition obligation 15,075 14,149
Unrecognized pension gain (49,114) (13,030)
Additional minimum liability - (1,921)
Accrued pension $ (78,876) (94,542)
The components of D-Link’ s and DTI’ s net periodic pension cost for 2000 and 2001, are summarized as
follows:
2000 2001
Service cost $ 28,166 27,925
Interest cost 8,030 9,183
Expected return on pension fund assets (6,943) (4,683)
Amortization 1,098 (2,862)
Net pension cost $ 30,351 29,563
Actuarial assumptions at December 31,2000 and 2001, are summarized as follows:
2000 2001
Discount rate 6.0% 4.50%
Rate of increase in future compensation levels 5.0% 4.50%
Expected long-term rate of return on plan assets 6.0% 4.50%